Advisor Group Broker-Dealers Facing $19.4M in GPB Capital Holdings Investor Claims
In Focus Reports submitted to the US Securities and Exchange Commission (SEC) in February 2022, four brokerage firms from the Advisor Group network disclosed that they were respondents in 58 Financial Industry Regulatory Authority (FINRA) arbitration cases. These arbitration cases, from July 2019 through the end of 2021, were over GPB-related losses.
GPB Capital Holdings, LLC, which issued these private placements, is accused of operating an over $1.8B Ponzi scam that defrauded more than 17,000 thousand investors. GPB investors typically purchased these high-commission products in $50K to $100K tranches. They have since suffered substantial investment losses.
Distributions of GPB private placements were stopped in 2018. Ponzi fraud allegations, resulting investigations, and litigation followed. The GPB funds plunged in value. Meanwhile, dozens of brokerage firms marketed and sold these alternative investments to customers, earning many millions of dollars in commissions and fees.